Estimating cost at the time of buying distressed property

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repair cost imageIn today’s real estate market, buying or selling a distressed property is a common practice. With inventory becoming harder to find, it seems like the best opportunities are in distressed properties for buyers and investors. The goal in getting the best deal, is to buy it at a price that will give enough room for error when flipping a property.

There are many ways to classify a distressed property which we will cover another time but, in short, a distressed property is a property which cannot be maintained by the owner.

The selling price of a distressed property is comparatively lower so it attracts many buyers. Since these types of properties are sold in “as-is” condition there are some things you should know when estimating your cost of repairs.

  1. First of all you have to categorize all the items that need to be inspected. For example: “Exterior grounds, entry, walkways, driveways” may be one category & “Fences, gates, retaining walls” may be another category.
  2. Look for both visible and invisible damages. For example: Inspect both the water tap which is visible and sewerage line which is invisible.
  3. Write down all the things that need repair, update and also write the items that need to be added.
  4. Then calculate all the values of the items, installation cost, remodeling cost etc.

When you do all of these things correct you will be on your way to calculating the correct repair cost.

If you are still not sure the best way to go about estimating repairs, here are some additional tips to help guide you:

  1. Hire reliable contractor to do these steps
  2. You may hire professional home inspectors who can inspect the property perfectly and make sure that all the visible and underlying damages and faults and the related repairing costs are identified properly
  3. You may work with an experienced REALTOR®

Many factors affect the value of a distressed property so we hope that these tips help you to effectively asses the cost of repairs. If you are looking for distressed properties or the best off market deals, then make sure you call A Team Marketing, LLC or,

click here to get our distressed property list.

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